Centum Targets Sh4.8 Billion to Complete Two Rivers Financial Centre in Nairobi

Centum Investment Company Plc is seeking US$37.3 million (Sh4.8 billion) from both retail and institutional investors to fund the Two Rivers International Financial & Innovation Centre (TRIFIC).

The project sits inside the Two Rivers Special Economic Zone (SEZ) in Nairobi. It forms part of Kenya’s strategy to build modern financial and technology infrastructure capable of attracting international service firms.

In a recent interview, Centum Chief Executive Officer James Mworia explained how the funding vehicle, an Infrastructure Real Estate Investment Trust (I-REIT), is structured to deliver a relatively high yield in US dollars. A Real Estate Investment Trust (REIT) is a vehicle that allows many investors to own shares in income-generating real estate without directly buying properties.

Mworia noted that all rental income from the centre is denominated in US dollars. This is because the tenants are service export companies operating within the SEZ. The dollar cashflows protect investors from currency fluctuations common in Kenya shilling-denominated assets.

The targeted 8.0 percent yield comes after careful management of costs during the structuring of the REIT. Mworia highlighted that the Nairobi Securities Exchange provided a discount that helped improve overall returns for investors.

Crucially, all the properties going into this investment vehicle are already fully occupied. This means there is no risk of empty spaces reducing income. Investors receive steady rental payments from day one.

The structure also includes a 3.0 percent rent escalation every two years. This built-in increase is designed to help maintain and grow the yield over time.

The Two Rivers centre will host fintech firms, professional services companies and other innovation-driven businesses. Construction of such high-specification commercial buildings typically involves advanced structural works, mechanical and electrical installations, data cabling and high-end interior fit-outs.

For the local construction industry, projects like this represent important opportunities in the commercial real estate segment. Civil contractors, specialist subcontractors and suppliers of building materials stand to benefit as these developments move from planning to completion and occupancy.

Mworia’s comments come as Kenya continues to promote SEZs to boost service exports and create jobs. The fully let status of the properties indicates that major construction phases have been successfully completed and tenants have taken occupation.

The I-REIT allows Centum to bring in fresh capital while giving ordinary Kenyans and institutions a chance to invest in prime commercial property. This model has gained traction in recent years as a way to finance large infrastructure and real estate projects.

Market observers will watch closely how the offering performs. Strong demand could encourage more developers to use similar REIT structures for office, mixed-use and innovation hub projects across Nairobi and other urban centres.

The initiative aligns with national goals of positioning Nairobi as East Africa’s leading financial and innovation hub. With steady rental income and dollar denomination, the product is positioned as relatively low-risk for yield-seeking investors.

As the fundraising window opens, both individual and corporate investors will assess the opportunity against other available options in Kenya’s capital markets.